13 replies to this topic

[Allan]

I am curious about pre-selling calendars and related items. Who carries the note until the client pays?

I know with K&B the PPD gets a commission check right away but is K&B floating the money or is the supplier?

Is this something that can be done by an independent? I know that he would not get his money until the client pays but are there suppliers that offer these extended terms?

[AdmanGR]

Allan,

If I read your question correctly, the distruibutor simply requests post dated shipping to the client and does not receive an invoice from the supplier until the calendars are actually shipped.

In the case of KB, home office advances the full commission to the dealer(salesperson) out of their own funds. They invoice the client when the goods ship - typically in the Fall. KB, in turn, pays the supplier within terms after receipt of the invoice.

Hope that is what you were after?
Rob

[Allan]

Ok that is what I thought K&B did. What about independents?

[wagstwo]

The supplier invoices you when the calendars ship at the date you specify (as early as 8/15, I believe). At that time you would be invoicing your client.

The advantage with K&B is you get your commission early, but as an independent, you have a committment for an order but it's not processed, paid, or invoiced until later in the year.

Hope this helps.

Cathy :)

[Allan]

Now for a related question.

This is a K&B question.

If you have pre-sold a calendar order and then the customer cancels (or goes out of business) before the order is shipped, what obligation do you have to K&B and to the supplier?

What about after it has printed but not shipped?

[AdmanGR]

Allan said:

Now for a related question.

This is a K&B question.

If you have pre-sold a calendar order and then the customer cancels (or goes out of business) before the order is shipped, what obligation do you have to K&B and to the supplier?

What about after it has printed but not shipped?

Dealer has the commission reversed ; KB has the obligation to supplier.

[plantia]

When we order early, we receive an invoice when the calendars are printed. With Norwood, the invoice has an early order discount if paid early, but the invoice is not due until the calendar ships.
Sue

[cmroma]

We have had several clients pre-order calendars.
2 of them are not the largest customers around.:) (read: questionable as to whether they might be around 7 months from now).
So...
We tell them that they can save some money by pre-ordering, and paying for their calendars.
We invoice them when the calendar order is placed. They have 30 days to pay the invoice.
We get our money early, but have to pay the supplier after the order ships. (We used estimated freight charges....most of the time the actual freight is a couple of dollars lower than we charged. Once it was a couple dollars more than we charged....we just ate the difference).
Never been a problem.

Craig

[Allan]

Thanks for the information. This is one area that I have not pursued in the past. I have always waited too late to get orders in to the factory. I am striving to get better on that issue.

[CBuerki]

What we do when we sell direct is to get 60% with the order and the balance is collected after the customer receives the product.

This could work with calendars ordered early I'd think. The Dist gets 60% up front to put in the bank, then pays the supplier when the product is shipped whatever month it is.

Chuck

[Promo Man]

What about pricing, should early orders that ship in the fall be billed at the preseason price of the suppliers?

[ozarknight]

What you charge your customer is up to you, but if you place a calendar order today for shipment 11/01, the calendar supplier will bill you at the pre-season, or early order pricing.

[bdadco]

We sell most of our calendar orders in January, February and March to get the early discount pricing, We insist that the suppliers, Hotline, Skinner Kennedy, Triumph Line, Finn Graphics and the others suppliers bill us at once so we can get the early pay discount of 5% to 6.5%. We could leave this money in the bank drawing intrest of 2 or 3% for a 12 month investment.
The early pay discount or 5% to 6.5% is far better money that any bank will pay you for using your money. All of our calendar orders are shipped mid October and are due from customer 30 days net. Not too bad of a return for a 6 to 7 month investment.